(MENAFN) The Russian economy is likely heading towards recession this year, as the repercussions of the political crisis in begin to affect the country, The Peninsula Qatar reported.
The EU and US threats of economic sanctions over Russia's annexation of the Crimea Peninsula have already caused a huge amount of capital outflow from Russia during the first quarter.
The Russian economy was already staggering even before the crisis as growth was slowing due to weaker consumer spending, investment and demand for energy exports among other issues.
The country's economy minister said: "The economic situation has become even more strained and internal factors have been exacerbated by a high level of uncertainty on currency and financial markets, serious capital flight, an unreadiness by investors to take decisions in this acute international situation."
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